What is Life Insurance? (In 30 seconds)

Good morning!
This sounds like a boring topic, that’s because it is. BUT it’s super important.

DEFINITION
What’s the point of life insurance?

• There’s a lot of hoopla out there about life insurance, and a lot of whack financial products to make you spend more than you need on life insurance.

• Life insurance only has one job…and that’s to replace your income if you die! That’s it.

PRACTICAL ADVICE
How do I avoid paying too much for life insurance?

• Life insurance should never be used as a savings plan, or a way to invest. That just overcomplicates things like crazy! So don’t fall for these whole life insurance policies that your sister’s uncle is trying to sell for the family. They’re a rip off. If you want to invest your money invest in a good mutual fund or an index fund, not a whole life policy. If you want to save, open a High-Yield Savings Account.

  Keep insurance as its own thing.

• MORE INFO ON TOMORROW’S NEWSLETTER

OUR COMMUNITY
What are your questions? Or share a win!

• Reply to this email with any personal finance question you have, or share with me any wins in your life! (I’ll respond to your questions anonymously in future emails)